Stuart Alderoty, the chief legal officer at Ripple, took to social media to share insights on the recent ruling in the SEC v. Coinbase legal battle. Alderoty’s remarks followed the court’s decision Wednesday, March 27, which favored the regulator, allowing the case to proceed to a full trial.
Alderoty critiqued the SEC’s position, suggesting that the SEC had presented a facade to the judge, asserting claims that now require substantial evidence to support. He voiced skepticism about the Commission’s ability to deliver on its allegations, referring to them as “all hat, no cattle.”
Notably, Alderoty recalled an incident where the Ripple judge dismissed an expert witness brought forth by the SEC, indicating a history of skepticism toward the regulator’s claims.
SEC v. Coinbase: What’s next?
The court’s recent ruling upheld the SEC’s allegations against major U.S. crypto exchange, asserting that Coinbase may be operating as an unregistered broker and clearinghouse. However, it also recognized Coinbase Wallet as not falling under the category of a broker. The focus of the ongoing legal proceedings will now narrow down to issues concerning the staking program of the exchange.
The legal saga between the SEC and Coinbase began last year, when the regulatory body filed a lawsuit alleging violations of federal securities laws. The matter of the case was accusation of the exchange offering trading and staking services without proper registration.
With a deadline set for April 19 for the parties to agree on a trial schedule, the stage is set for a rigorous legal battle ahead.
